20140909 MoneyTips Fincon The retiree screen Res FINAL 207x300 Toward a care free retirement. (This post is part of the “Retiree Next Door Movement,” created by MoneyTips.com. More than 70 personal finance bloggers committed to write about a single issue on the same day to raise awareness.)

When MoneyTips.com surveyed 510 retired and semi-retired persons about their financial habits, I was surprised that just 30 percent considered themselves “frugal” before retiring, whereas 67 percent said they spent “enough to live comfortably.”

Now that they’re not working or working a lot less, the numbers haven’t changed much: 65 percent live comfortably and 35 percent live frugally.

Those numbers should give hope to people who might fear they won’t have the resources to retire. That’s because terms like “comfortably” and “frugally” can mean just about anything you want them to mean.


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th3 Should you drop collision coverage?If you’re thinking about ditching collision, don’t do it based on some imagined formula. Although most people drop it by the eighth year of ownership, there’s no hard-and-fast (fast and furious?) rule.

Or so I found out while researching “When to drop collision coverage – and risk it all” for Insurance.com.

You’re required to have collision until your auto loan is paid in full. It repairs or replaces your wheels when you’re hit by an uninsured driver or when you have an at-fault accident. (Damn you, black ice!)

Insurance.com analyzed data from half a million car insurance quotes and found that year eight is when the biggest number of owners bid adieu to collision. Some swear by “the 10 percent rule”: If the annual premium is 10 percent or more of the car’s value, better to bank those bucks against a replacement vehicle.

But it’s not always that simple. Collision coverage is another example of how those living on the margins pay more.


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th11 150x150 School shopping and other topics.Haven’t started your back-to-school shopping yet? You’re not alone.

According to the National Retail Federation, 44.5% of parents will shop from three to four weeks before school starts. Another 25.4% will wait until one or two weeks before the first day of classes.

Despite the rising cost of basics like food, fuel and utilities, we will be shopping. That NRF survey indicates that combined K-12 and college spending will reach just under $75 billion in the United States this year.

However, we’ll be pickier about how and where we buy. For example:


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th4 What Im writing, and a TweetChat that might pay.A regular feature on the Get Rich Slowly blog is “Ask the Readers.” Last week’s question was “How can we improve Get Rich Slowly?

Imagine my preenery when a handful of readers replied, “Bring back Donna Freedman.”


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th1 Wealthy people think you could live on less. Here’s a piece of advice from the rich: You ought to be able to live comfortably on $25,000 to $50,000 per year.

This was one of the takeaways from the Country Financial Security Index, a survey of about 3,000 U.S. residents published a few months ago. More than half (55 percent) of the respondents consider themselves “middle-class,” even though some of them made incomes of as much as $200,000 a year.

Depending on where you live, $200k might not be enough to live on, at least comfortably. Which brings us to another result, something called the survey authors call the “comfort gap.” Nearly half of the respondents believe that $50,000 to $100,00 is enough to live comfortably. Yet only 34 percent consider the people who earn such incomes to be “financially well-off.”

Sure, they may have nice stuff. But actual security? Not gonna happen on that salary.

And here’s the part that concerns me: More than half of the respondents who described themselves as “wealthy” believe that an individual could live comfortably on $25,000 to $50,000 a year.


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